The S.W.O.T. Analysis Strengths. Weaknesses. Opportunities. Threats

The S.W.O.T. AnalysisThe S.W.O.T. AnalysisStrengths. Weaknesses.Opportunities. Threats.

The S.W.O.T. AnalysisThe S.W.O.T. Analysis

A framework used for analysis


A framework used for analysisOrganizes facts and info into categories


A framework used for analysisOrganizes facts and info into categoriesCan be used to analyze a company,

economy, country – even sports teams



economy, country – even sports teamsAssesses the organization in terms of its

environment



economy, country – even sports teamsAssesses the entity in terms of its’

environmentShould be completed before making

decisions about product development

The S.W.O.T. Chart Looks Like The S.W.O.T. Chart Looks Like This… This…

StrengthsStrengths WeaknessesWeaknesses

OpportunitiesOpportunities ThreatsThreats

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StrengthsStrengths WeaknessesWeaknessesInternal characteristics of the business that give it an advantage over others in the industry

Internal characteristics that place the firm at a disadvantage relative to others

OpportunitiesOpportunities ThreatsThreatsexternal chances to make greater sales or profits in the environment

external elements in the environment that could cause trouble for the business.

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Strengths & WeaknessesStrengths & Weaknesses

Internal factors affect the operation of the business



They are either positive or negative



They are either positive or negativeThey are analyzed according to the “3C’s”

◦Company◦Consumers◦Competition

CompanyCompany

1. What is the mission of the company?2. How experienced is the company?3. What is the quality of staff?4. Is staff trained effectively?5. How effective is its sales force?6. Has the company been profitable?7. Are sales trending up or down?

Company cont’dCompany cont’d

8. Is the development team creating successful new products?

9. How are pricing strategies working?10. How is the company positioned in the

marketplace?11. Are promotional strategies effective?12. What is the company’s image and

reputation?13. Do products easily reach consumers?

ConsumersConsumers

1. Who are the customers?2. What, where, when and how much do

they buy?3. How do customers rate the business on

quality/service?4. Are there any customer segments not

having their needs met?5. Is the size of the customer base

increasing or decreasing?

CompetitionCompetition

1. Does the company have a strong market share position?

2. What advantages does this company have over its competition?

3. Are its advantages sustainable or non-sustainable?

Strengths Lays has a long history, and is an established brand with

consumers◦ 96% of the Canadian population shows high brand awareness

High 'household usage'◦ 70% of households report buying Lays

Lays offers a wide range of flavours that meet the needs of its consumers

Lays has a strong distribution system◦ Its sales force manages the shelves◦ It is found in many locations in Canada

Lays is a very profitable brand Lays, as a brand, is held in high regard by its consumers

Lays example (Internal):Lays example (Internal):

Lays example (Internal):Lays example (Internal):

Weaknesses:Lay's packaging is non-recyclableLay's is a fried foodLays does not enjoy very high market

share in Western Canada◦70% national market share, 58% in Western

Canada Lay's consumers are not as brand loyal as

hoped

Opportunities and ThreatsOpportunities and Threats

External factors that affect the operation of the business1.Consider our competition. Is the competition doing anything that poses a threat to our company or provides an opportunity to us?2.Are there any changes in laws that pose a threat or provide an opportunity to us?

“Do Not Call” registry, downloading music, nutritional information laws

Are consumers changing in terms of their behaviour, attitudes, lifestyles and will this pose a threat or provide an opportunity for our company?

1. greater ethnic diversity, trends toward healthier living

Opportunities and ThreatsOpportunities and Threats

External factors that affect the operation of the business

4.Consider changing technology. What threats are posed? What opportunities are created?

5.What is the state of the economy right now? Consider:

◦Are we in good economic times, or trending toward a recession?

◦Are consumers confident? Are they spending money?

Lays example (External):Lays example (External):

Lays example (External):Lays example (External):ThreatsGovernment regulations are coming through (lowering

snack foods in schools, nutritional content labelling)Future government regulations are possible (e.g.

banning advertising of snack foods to children)There is an obesity crisis in North AmericaRising awareness of additives and issues with

preservatives; consumers perceive chips to be very bad in this area

Increased competition from value brands (e.g no-name) - consumers are more price-conscious than ever

Lays example (External):Lays example (External): Health studies released in February 2009 that links a

chemical in burned chips to cancer Growing age of population - why is this a threat? Consumers are increasingly concerned about where its

food comes from (source of raw materials and supplies) Consumers are more concerned about the environment

than ever Consumers are less brand loyal to flat potato chips than to

Ruffle style chip Competition such as No-name are offering price

competitive advantage to consumers Competition such as Old Dutch is stealing market share

from Lay's

Now it’s your turn, try to make a SWOT Now it’s your turn, try to make a SWOT Analysis for the Pan Am GamesAnalysis for the Pan Am Games

StrengthsStrengths WeaknessesWeaknesses

OpportunitiesOpportunities ThreatsThreats

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Pan-Am GamesPan-Am Games

David Peterson Interview

Not everything on time and on budget?

Documents

The S.W.O.T. Analysis Strengths. Weaknesses. Opportunities. Threats